The Litecoin project is getting a lot of attention right now amid the events happening on its “big brother,” bitcoin
Fuss over Ordinals
The Litecoin project and its native token have unexpectedly benefited amid the turmoil of the bitcoin network.
Recall, recently the amount of commissions for mining a block in the bitcoin network for the first time since 2017 exceeded the main reward for mining cryptocurrency.
The main reason for the growth of bitcoin-transfers cost is considered the increased interest of market participants to the Ordinals protocol. It can be used to create NFT within the BTC network.
Alternative versions of what’s happening don’t rule out an increase in commissions on the bitcoin network due to a DoS attack.
In any case, the sharp rise in the cost of transfers in the network BTC prompted some traders to switch their attention to cheaper and faster alternatives for transactions, and this gave support to the “little brother” of bitcoin, the project Litecoin.
Litecoin breaks records
According to BitInfoCharts, the Litecoin transaction rate soared to an all-time high of 576 000 on May 9.
Since the beginning of May, the number of intraday transactions on this blockchain has increased by 470%.
Litecoin and BTC transactions.
Note that a similar spike in activity is occurring on the bitcoin network. Here, amid the excitement around Ordinals and memcoins, the daily transaction rate exceeded the 580,000 mark this week.
But commissions in Litecoin network look much more attractive in comparison with BTC.
According to BitInfoCharts, on May 9 the average commission per transaction in the Litecoin network was only $0.003.
Meanwhile, the average bitcoin commission exceeded the $20 mark yesterday, surpassing Ethereum’s $18.
Average transaction fees for LTC, BTC and ETH.
Also on May 9, the Litecoin Foundation reported an increase in the rate of new addresses being created. According to the project team, it has surpassed that of the bitcoin network:
Data from Glassnode shows that the number of active addresses in the Litecoin network soared to 813 000 on May 9, an increase of 278% since the beginning of the month.
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LTC dynamics
Similar growth of network activity had a favorable impact on the dynamics of the project’s native token. LTC gained 3%, attacking the round mark of $80, but then retreated to the area of $79.25.
However, the coin is still a long way from its historical high of $410 in May 2021.
Many in the community, however, are hopeful that LTC will soon get a boost as an important event in the Litecoin ecosystem approaches.
As a reminder, approximately on August 3 the next halving will take place on the project’s network. In previous cycles, it became a catalyst for large price movements.